Pittsburgh-based natural gas heavyweight EQT Corp. posted a $407 million third-quarter profit, bolstered by a smooth integration with newly acquired competitor Olympus Energy.
“Strategically, when we look at what we’re doing, it’s really simple: getting access to the best markets and supplying the best energy,” EQT CEO Toby Rice said on an earnings call Wednesday.
EQT, which leads natural gas drilling and fracking in Southwestern Pennsylvania, eastern Ohio and northern West Virginia, lost $301 million during the same quarter last year. It has ridden strong demand to profitability every quarter since.
The company sold $634 million in gas during this latest quarter at an average of $2.76 per 1,000 cubic feet equivalent — a relatively low price.
The $1.8 billion Olympus deal in July added more than 100,000 acres of production footprint in Allegheny and Westmoreland counties to EQT’s portfolio. The firm says it has slashed the time to drill deep wells on this territory by 30% and the cost by $2 million, compared to Olympus’ practices.
“Our execution machine is firing on all cylinders,” Rice said.
EQT’s regional dominance has proved valuable amid a boom in energy demand. The company won multiple contracts this year to supply Southwestern Pennsylvania power plants that will have direct hook-ups to data centers, including a massive plant in Homer City.
Jeremy Knop, chief financial officer for EQT, said additional deals could be on the way, describing the market as an “all-you-can-eat opportunity” for natural gas producers.
On liquid natural gas, Knop said he expects demand growth, particularly outside of the U.S. He did note, however, supply could still outstrip demand in the coming years and force prices down.
